Bankruptcy Law Archives - Page 47 of 128 - Kingcade Garcia McMaken, P.A. Bankruptcy Attorneys

Bankruptcy Law, Credit, Debt Relief, Student Loans, Timothy Kingcade Posts

SEC Settles Fraud Charges against ITT Technical Institute

Posted on July 6, 2017by Admin

The fraud case has been settled against ITT Technical Institute, but the Securities Exchange Commission continues to pursue top executives from the college for deceiving investors about the high rates of late payments and the number of defaults on student loans backed by the company.

ITT executives assured investors in conference calls that the programs were performing well when in fact the company was making secret payments on the delinquent accounts to delay defaults, according to the complaint.

ITT Technical Institute ended its operations in September, shutting down 137 campuses after the U.S. Department of Education cut off access to federal loans and grants and threatened to pull the school’s accreditation amid mounting lawsuits and investigations. The company filed for bankruptcy protection, leaving 35,000 students with worthless degrees and many with high interest student loan debt.

The student loan programs are what is at the heart of the SEC lawsuit. ITT created two in-house student loan programs. To get investors to finance the programs, the company offered a guarantee to limit the risk of students not repaying the debt. According to the complaint, if a certain percentage of loans defaulted, the company agreed to cover the principal, interest and fees.

The SEC said investors did not have accurate information about the performance of the debt because ITT kept the loan programs off its balance sheets. Regulators said executives failed to tell investors that the company was facing $30 million in guarantee obligation payments at the end of 2012 and used accounting tricks to cover up the numbers.

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For borrowers who are struggling with student loan debt, relief options are available. Many student loan borrowers are unaware that they have rights and repayment options available to them, such as postponement of loan payments, reduction of payments or even a complete discharge of the debt. It is important you contact an experienced Miami bankruptcy attorney who can advise you of all your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

OJ Simpson Defense Attorney F. Lee Bailey Files Again for Bankruptcy

Posted on July 5, 2017by Admin

F. Lee Bailey, OJ Simpson’s former defense attorney has filed for bankruptcy once again; this time to create a payment plan to resolve a federal tax debt owed.

Bailey recently filed for Chapter 13 bankruptcy, which allows a person who has a steady income to create a payment plan with creditors. His latest bankruptcy filing will allow Bailey to discharge certain debts he could not eliminate in his Chapter 7 personal bankruptcy filing last year.

Bailey resolved his personal IRS debt through the earlier bankruptcy filing, but the federal government retained liens on some of his property that could not be discharged in the prior case.

His attorney said he estimates the IRS liens on Bailey’s property are worth about $100,000, but the government could dispute that as federal officials previously estimated their secured claims against Bailey at around $600,000.

Bailey owed the IRS approximately $5 million, in total. Bailey’s filing in the Chapter 13 case states that he has assets worth between $100,000 and $500,000 and debts between $1 million and $10 million.

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If you are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

Bankruptcy Law, Debt Relief, Student Loans, Timothy Kingcade Posts

How Marriage Affects Your Student Loan Debt

Posted on July 3, 2017by Admin

Saying “I do” does not mean you are legally bound to your spouse’s student loans. Each of you remains responsible for your own student loans you took out before the marriage. However, tying the knot can affect your payments, student loan-related tax breaks and your ability to pursue other financial goals. Here are some other ways marriage can have an affect on your student loans.

Your monthly payment could increase. Federal loan borrowers can enroll in one of four income-based repayment plans to lower their monthly payments. However, the Revised Pay As You Earn Plan, determines married borrowers’ payments based on their combined adjusted gross income and student loan debt. This typically means a higher monthly payment.
You risk losing the student loan interest deduction. The student loan interest deduction tax break allows you to deduct up to $2,500. But if you and your spouse earn more than $160,000, you will lose out on that deduction- even if you file separately.
Your spouse’s payments could affect your finances. In the event you co-sign your spouse’s private student loan, you are legally responsible for repaying it if he or she cannot. The loan will also appear on both of your credit reports. And if your spouse takes out a student loan during your marriage, then defaults creditors in some states can go after both of your wages and assets- even your tax refund.
Your spouse may help pay off your student loan. If you and your spouse decide to help each other pay off your student loan debt, consider coming up with a written agreement. This could help avoid future arguments, especially in the case of divorce if one spouse depends on the other financially.

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Bankruptcy Law, Debt Relief, Student Loans, Timothy Kingcade Posts

The “Soup Nazi” of Seinfeld Fame Files for Bankruptcy Protection

Posted on June 29, 2017by Admin

The New York City food company, Soupman, made famous by the popular Seinfeld TV sitcom, has filed for bankruptcy protection just weeks after its CFO was indicted on federal tax evasion charges. A Chapter 11 bankruptcy petition was filed in Delaware stating that Soupman had estimated debts ranging from just over $10 million to $50 million and assets between $1 million and $10 million.

CFO Robert Bertrand failed to pay Medicare, Social Security, and federal income taxes. His job included collecting, accounting for and paying the taxes for Soupman’s employees. However, the indictment alleged that between 2010 and 2014 Bertrand paid employees with undocumented cash, and compensated certain workers with unreported stock awards.

As a result, the federal government lost $593,971 in total tax payments that should have been paid by the company, according to prosecutors. Bertrand, who has pleaded not guilty, was released on $50,000 bond, pending a scheduled hearing on July 18, court records show.

The Staten Island-based, Soupman company licenses the name and recipes of Al Yeganeh, the model for the gruff “Soup Nazi” character in the popular Seinfeld series. The character focused fanatically on his culinary creations and refused to serve certain customers using the popular catchphrase: “No soup for you!”

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Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

How a debt avalanche strategy can eliminate your debt

Posted on June 28, 2017by Admin

One of the smartest and fastest ways to eliminate your debt is a strategy known as a debt avalanche. To start, you must first take inventory of your debt- meaning you need to write down all outstanding debts- including credit card balances, student loan payments, car payments, etc. and determine the interest rates you are paying on each of the balances.

The debt avalanche strategy begins by ranking each of your debts by interest rate, from highest to lowest. No matter the size of the loan balance, it will always be less expensive (and faster) to pay off your debts in order from highest to lowest interest rates.

For example, your interest rate on a credit card is probably going to run much higher than the interest rate on your vehicle. Tackle those debts with the highest interest rates, first and save as much money on interest payments as possible.

Finally, if the debt inventory process reveals an overwhelming or confusing amount of debt, consider meeting with a financial expert who can discuss your options in greater detail. Sometimes a simple debt consolidation can reduce your payments by thousands, just by reducing the interest amount. If you fear you might be at risk of personal bankruptcy, it is best to meet with a professional as soon as possible to know exactly where you stand. Many bankruptcy attorneys offer free consultations and have appointments available on the weekend.

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If you have any questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

Bankruptcy Law, Debt Relief, Student Loans, Timothy Kingcade Posts

Trump Administration Delays Student Loan Forgiveness Program

Posted on June 26, 2017by Admin

The federal student loan forgiveness program established to refund borrowers who were defrauded by their schools has been put on hold until further notice, according to the Department of Education. This applies to Corinthian College students who were defrauded by the school’s deceptive advertising and false job placement rates. Approximately 15,000 student loan forgiveness claims from Corinthian students had been approved as of October 2016.

Here are the requirements for qualifying for a borrower defense federal loan discharge:

If your school misled you in any way about your loans or education program;
If your school violated certain state laws, such as consumer protection statutes or laws related to your loan or educational services.

Secretary of Education Betsy DeVos said on June 14 that last year’s expansion of the forgiveness rules “missed an opportunity to get it right.” Several Democratic senators are demanding answers and asking the Dept. of Education to provide detailed information regarding loan forgiveness applications and approvals for past students of Corinthian Colleges, along with two other failed for-profit college chains: ITT Technical Institute and American Career Institute.

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Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Mark Your Calendars: Starting July 1, certain negative marks will vanish from credit reports

Posted on June 21, 2017by Admin

Starting July 1, many people with tax liens, civil judgments and certain medical debts will see a boost to their credit scores. The three largest credit bureaus- Experian, Equifax and TransUnion, will no longer report a tax lien or civil judgment on a consumer’s credit report if it does not include the person’s name, address and either their social security number or date of birth. Existing liens missing this information will also be expunged.

Consumer-friendly changes will also be made to the way medical debts are reported. According to the new rules, bureaus will not display medical collections until at least six months after the account became delinquent. They will also remove any existing medical collections that insurance companies have paid or are paying for. After the liens and judgments are expunged, some consumers can expect to see their credit score increase by as much as 40 points- enough to affect a loan approval or the terms. The leading scoring company, FICO, estimated that out of 200 million “scorable” consumers, roughly 12 million will have a lien or judgment disappear from their report.

Starting July 1, the credit bureaus also will check lien and judgment data every 90 days to make sure the information is still accurate. These changes come as credit bureaus have been put under pressure from regulators and state attorneys general to improve the accuracy of credit reporting. To confirm their data is correct, consumers should get a free copy of their credit report from each of the three bureaus once a year at www.annualcreditreport.com.

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Bankruptcy Law, Debt Relief, Foreclosures, Timothy Kingcade Posts

Wells Fargo Accused of Making Improper Changes to Mortgages

Posted on June 20, 2017by Admin

A new class action lawsuit accuses Wells Fargo of making unauthorized changes to home loans held by customers in bankruptcy. The changes, which typically lowered monthly mortgage payments, appeared to benefit borrowers at first- but the details reveal the changes would extend the terms of the borrowers’ loans for decades, which means they would have monthly payments for far longer and owe the bank much more.

Any change to a payment plan for a person in bankruptcy is subject to approval by the court and the other parties involved. But according to the lawsuit, Wells Fargo went ahead and made these changes to the home loans without such approval.

This puts borrowers in bankruptcy at risk of defaulting on the commitments they have made to the courts and could make them vulnerable to foreclosure. According to court documents, Wells Fargo has been putting through these un-requested changes to borrowers’ loans since 2015.

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Choosing the right attorney can make the difference between whether or not you can keep your home. A well-qualified Miami foreclosure defense attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. Miami foreclosure defense attorney Timothy Kingcade has helped many facing foreclosure alleviate their stress by letting them stay in their homes for at least another year, allowing them to re-organize their lives. If you have any questions on the topic of foreclosure please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Tips to Remember When Applying for a Balance Transfer Credit Card

Posted on June 19, 2017by Admin

Some debt is unavoidable and not always a bad thing, like taking out a mortgage to purchase your new home. But if you are carrying a lot of high interest credit card debt, you may have trouble reaching certain financial goals. One of the most effective ways to pay off the credit card debt quickly is by transferring the balance over to an interest-free credit card.

Here are three helpful tips for using these cards.

Read the fine print. Do this carefully and find out what your credit limit will be. You will not be able to transfer more than the limit and if you exceed that limit, you will likely face a fee. Find out if there is a penalty, APR. That is when the credit card company increases your interest rate to 25 – sometimes 30% if you pay a single bill late or commit another violation of the terms & conditions (usually listed in the fine print).
Choose your card wisely. Balance transfer credit cards vary and typically offer initial interest rates at 0%, but beyond that there are some big differences. Remember, the 0% interest rate will only last between six and 12 months, after that a more standard interest rate will apply- and typically not a good one. In addition, a lot of balance-transfer cards will charge a balance transfer fee. The fee will typically be between 3% and 5% of the sum of what you are transferring. For example, if you are transferring $20,000 and paying a 4% balance transfer fee, it will cost you $800.
Pay off your debt within the “promotional” period. To make the most of your balance transfer, set a goal of paying off the debt before the 0% rate expires. This will require you curb your spending habits. Canceling your cable package and instead streaming movies and TV shows can save you $1,500 or more a year. Take your lunch to work three days a week, instead of eating out every day. Making small changes like this to your daily routine can really add up.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Supreme Court will not Expand Debt Collection Abuse Law in Santander Case

Posted on June 16, 2017by Admin

The U.S. Supreme Court declined to expand a federal law protecting consumers against harassment and threats in debt collection attempts. The court unanimously upheld a lower court’s dismissal of a proposed consumer class action lawsuit against the auto-lender Santander Consumer USA Holdings Inc. over allegations it violated the Fair Debt Collection Practices Act.

The case came down to the definition of “creditor” and “debt collector” and whether a company that buys debt should be treated as a creditor, not subject to the the collections law. The law applies only to companies that collect debts on behalf of others and does not apply to businesses like Santander who purchases the distressed debt from other companies after it defaults, the Supreme Court ruled.

The ruling was the first written by the court’s newest justice, Donald Trump-appointee Neil Gorsuch, who wrote that any changes to the law should come from the U.S. Congress, not the court. The four Maryland residents who had defaulted on their car loans filed the proposed class action lawsuit in 2012 in federal court, accusing Santander of violations of the debt collection law including misrepresenting debt loads and bypassing the debtors’ lawyers.

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Related Resources:

http://www.marketwatch.com/story/supreme-court-wont-widen-debt-collection-abuse-law-in-santander-case-2017-06-12

https://www.reuters.com/article/us-usa-court-debt-idUSKBN1931NA